Time Warner Cable Trades Reflect Concern in Comcast Deal

Trading in Time Warner Cable stock reflects concern that regulatory approval of Comcast’s acquisition won’t be as quick or clean as anticipated.

The difference between Time Warner Cable’s stock price and what Comcast promises to pay shareholders when the deal closes has more than doubled since April, reaching its widest point of 7.75 percent on Sept. 30. A decision by regulators to extend a review of the deal and opposition by large companies such as Netflix and Discovery Communications have fueled the pullback. What traders are on alert for is how far the US government will push in seeking concessions in return for allowing a merger. There was a sense early on that Comcast’s lobbying and ties to the Obama Administration meant serene passage, said Christopher Pultz, head of merger arbitrage for Kellner Capital. “This was just going to get waved through,” Pultz said. “All of a sudden people realize maybe there’s a little more risk in this than people thought.”